SALE OF PRE USED MOTOR CAR

[vishal sharma]

MY CLIENT IS A REGISTERD DEALER UNDER WEST BENGAL VAT.

IT WANTS TO SELL ONE CAR WHICH HAS BEEN USED FOR SOME TIME.

WEST BENGAL VAT PRESCRIBES 4% VAT ON SALE OF PRE USED CAR. FURTHER IT GIVES A DEDUCTION OF 50% UNDER RULE 26K TO ARRIVE AT TAXABLE TURNOVER WHICH WILL BE CHARGEABE TO VAT.

CAN ANYONE SUGGEST (1) WHETHER MY CLIENT WILL BE ENTITLED TO DEDUCTION UNDER RULE 26K CONSIDERING THE FACT THAT HE IS NOT A DEALER OF PRE USED MOTOR CAR. (2) WHAT WOULD BE VAT RATE CHARGED IN INVOICE/BILL.

THANKS

VISHAL SHARMA

AI Summary

Dealer Inquires on 50% Deduction for Pre-Used Car Sale under Rule 26K and Applicable VAT Rate A registered dealer under West Bengal VAT seeks advice on selling a pre-used car, which incurs a 4% VAT. The dealer inquires whether they can apply a 50% deduction under Rule 26K to determine the taxable turnover, despite not specializing in pre-used cars, and what VAT rate should be charged on the invoice. The response confirms that VAT is applicable as the seller is a dealer, implying the standard VAT procedures apply.